$15 minimum wage increase met with mixed reception from public

$15 minimum wage increase met with mixed reception from public

Announced by the Rachel Notley government in 2015 and adjusted in stages since, the policy has taken Alberta from the lowest minimum wage in the nation to the highest. To find out how this adjustment has effected the Tri-Region and those who live in the area, The Spruce Grove Examiner reached out to a politician, expert and local business owner, here's what they had to say.

Perks Coffee House owner Ken Turlock is concerned about the minimum wage increase in Alberta and said it makes it difficult to take someone under his wing as a business owner. Photo by Evan J. Pretzer / Reporter/Examiner

The “Fight for $15” has come to a close in Alberta with the new minimum wage now in place throughout the province.

Announced by the Rachel Notley government in 2015 and adjusted in stages since, the policy has taken Alberta from the lowest minimum wage in the nation to the highest. To find out how this adjustment has effected the Tri-Region and those who live in the area, The Spruce Grove Examiner reached out to a politician, expert and local business owner, here’s what they had to say.

It is a hand up

According to Stony Plain MLA Erin Babcock, the new minimum wage in Alberta is an important part of serving all members of society and making sure they operate on an equal playing field in the marketplace. In a conversation Tuesday, the NDP politician also added many of the claims pertaining to the new money-such as it going towards younger people who may not need it-were not accurate to the reality presented by actual statistics.

“Having been a single parent and a low earner, I think every Albertan deserves a living wage or as close to one as we can afford right now,” she said. “Over 11 per cent of our workers make minimum wage and most of them are parents, so we’re not talking teenagers, this is a common misconception. This is a hand up to people who are struggling, not a hand out.”

Indeed, it is one commonly cited in a number of reports where individuals express criticism of the policy. Just recently in the Calgary Herald, Fiasco Gelato CEO James Boettcher questioned the wisdom of the decision, pointing out he did not mind higher wages, but not for younger employees.

“It’s going to be very hard for an employer, even one like me who wants to provide opportunity to young people,” he said. “You get a stat holiday and all of a sudden you’re paying a kid — who’s living at home and is just saving money for a new bicycle or a family trip to Hawaii — $23, $24 an hour.”

According to statistics from the non-partisan Public Interest Alberta group however, more than three-quarters of those receiving the raise to $15 this month are over the age of 20. Meaning most of the increase does not appear to be going to youth as is believed by some opponents of the measure, though economics experts do say the data is not yet showing all results.

There could be lag

“I think we might see things like prices increasing later once the new wage has been in effect for a while,” Joseph Marchand, Economics Associate Professor at the University of Alberta said. “We haven’t seen any side effects thus far and this is kind of surprising.”

Marchand also said he was worried about how the policy would effect youth. In his view, though the government is claiming the initiative is a success, he believes there are aspects of the data, which are debatable at best, particularly regarding young people.

“They’re touting victory, but I think how they’ve done it is questionable,” he said. “We hear total employment has gone up, but technically this is true if you don’t take into account population increases. In no way is total employment keeping up with population growth. And youth had gone down by five points. It really cratered along with oil going down and I am really worried when you look at data we might see youth jobs get hit again.”

Business backlash

Though, for some business owners, the hit for youth is already here, in spite of the uncertainty of experts and the hopefulness of elected officials.

“Now when you bring someone in for $15 an hour, it is difficult to take them under your wing,” Perks Coffee House owner Ken Turlock said. “When a better government comes in and notices the problem, hopefully they’re gonna start to subsidize younger workers, this is really what we need. We need our younger workers subsidized.”

As of Sept. 28, none of the opposition parties in the legislature have advocated for youth employee subsidies, though each has been discussing adjusting the law to set different wages for young people and tipped employees, according to CBC News.